LED is a very hot investment industry in the past few years.
From landscape lighting, backlight, to display applications, LED engineering is everywhere.
Investors predict that LED's next chance of large-scale popularization will be to enter the huge market of home lighting, which also brings infinite imagination to the development prospect of the industry.
However, the industry is also facing various severe tests at present: lack of core technologies, accumulation of small and medium-sized enterprises, vicious competition, overcapacity, etc.
So how can we reverse this situation and what adjustments do enterprises and governments need to make if LED industry wants to succeed?
In recent years, China's LED industry has begun to face the pains of transformation and upgrading.
Recently, Li, an insider in the industry, said at the middle-age meeting that most Chinese LED enterprises do not have core technologies, so they are concentrated in the production of downstream lamps, in addition, it mainly relies on government subsidies and engineering projects to eat, so it is easy to rush into action, resulting in overcapacity and vicious competition.
In the LED industry chain, there are at least five thousand enterprises in the light bulb process. This cannot be said to be the Red Sea, but it is also a place that basically cannot enter.
Further upstream, there are more than one thousand packages, which are also very crowded.
If you go up to the epitaxial film, this place is a little smaller, more than 50, and now it may exceed this number.
Investors at the forum said that one of the important reasons for the overcapacity in the industry was that the downstream production did not need patented technology and the entry threshold was low, resulting in a situation of too many monks and too few porridge.
However, a different point of view will be drawn from another angle.
Yu Lifeng, a partner of Jiyuan Capital, believes that the current statement of LED overcapacity is a false proposition. Once the real market demand is excavated in the future, the future of the industry is immeasurable.
The market demand is empty. It does not go into the real product and becomes an energy-saving product, but an engineering company.
Now look at most, even some LED listed companies, in the true sense of positioning it as an energy-saving product company, I think it is not accurate, it should be defined as an engineering company.
So I think the future space in this field is huge, including many other lighting tools that we all said just now will be eliminated, including incandescent lamps, the future is expressly prohibited by law.
In the view of investors, one of the core problems of China's LED industry at present is that enterprises have not really penetrated into the consumer market.
Therefore, in order to release the future development space of LED, on the one hand, it depends on the survival of the fittest in the market, and at the same time, it needs to transform from an engineering company to a product company, and master independent technology and improve competitiveness in the process.
However, in an environment where policies favor large enterprises, small and medium-sized enterprises are in a dangerous situation.
Because the state gives subsidies, of course, to subsidize our own enterprises with intellectual property rights.
There is also the terminal. The state subsidy is for large enterprises, so there is a list. I have seen that only large enterprises can be taken care of. Many small enterprises will definitely die in the future.
There is nothing wrong with the government supporting emerging industries with subsidies. But to supply large or small companies?
Is it the technical link in the front section or the demand link in the back end?
Nie Peijia, CEO of Lejian Technology, believes that the current subsidy method for LED industry in China is not conducive to the healthy development of the industry. Subsidizing the front-end production links will only stimulate the continuous expansion of the industry, there will eventually be overcapacity.
I think government subsidies should be in demand, tax rebates and so on. For example, the EU government and the U. S. government are the same. For example, a light bulb costs US $10. In fact, ordinary consumers can buy it for US $6, because there are tax rebates and other measures.
For our small and medium-sized enterprises, we will never enjoy this kind of investment that is only at the forefront. This kind of investment activity actually has no guarantee for the quality of products and projects.
Not only LED industry, photovoltaic, electric vehicles and other industries have similar lessons.
Only through proper policy subsidies can we truly create demand and promote the development of the industry.
At the same time, only by improving the quality of their own products through technological innovation can enterprises truly establish themselves in the market competition.